BorgWarner Announces 40% Increase to Quarterly Dividend

CHICAGO, Jan. 23, 2004 -- The board of directors of BorgWarner Inc. has declared a quarterly dividend of $0.25 per share on all of the company's issued and outstanding common stock, a 40% increase over the previous dividend amount. The dividend is payable February 17, 2004 to shareholders of record on February 2, 2004.

"Over the past two years, we have increased our quarterly dividend almost 70%," said Timothy M. Manganello, Chairman and CEO. "These increases demonstrate our confidence in BorgWarner's long-term future and our commitment to returning value to shareholders. As we have stated, we expect 2004 to be a continuation of the strong growth that we have experienced over the past few years, and this dividend increase exemplifies that belief."

BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 43 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and VW/Audi. The Internet address for BorgWarner is: http://www.bwauto.com/ . For further information contact BorgWarner Corporate Communications at 312-322-8500.

Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward- looking statements. Such risks and uncertainties include: fluctuations in domestic or foreign automotive production, the continued use of outside suppliers by original equipment manufacturers, fluctuations in demand for vehicles containing the Company's products, general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Cautionary Statements filed as Exhibit 99.1 to the Form 10-K for the fiscal year ended December 31, 2002.